Axis Bank has announced a robust set of financial results for the first quarter of the fiscal year, reporting a 23% year-on-year increase in net profit to ₹7,114 crore. This impressive growth was primarily fueled by steady core income expansion and a significant reduction in provisions, demonstrating the private lender’s resilient operational performance. The bank’s Net Interest Income (NII)—the difference between interest earned on loans and interest paid on deposits—grew by 8% to reach ₹13,448 crore, up from ₹12,443 crore in the corresponding quarter of the previous fiscal year. Meanwhile, the Net Interest Margin (NIM) for the quarter stood stable at 4.05%, reflecting efficient asset liability management despite a highly competitive deposit environment.
A standout highlight of the earnings report was the bank’s continued improvement in asset quality. Axis Bank’s Gross Non-Performing Assets (GNPA) ratio declined to 1.54%, showing a healthy contraction from the 1.96% recorded last year. Similarly, the Net Non-Performing Assets (NNPA) ratio improved to 0.34%, down from 0.41% year-on-year. Credit growth remained balanced, with total advances increasing by 14% year-on-year, driven by strong demand across domestic retail and corporate loan segments. On the liabilities side, total deposits grew by 13% year-on-year, though the bank noted that managing the low-cost Current Account Savings Account (CASA) ratio remains a core focus. Supported by declining credit costs and a well-capitalized balance sheet, the bank’s management expressed confidence in maintaining sustainable loan growth while continuously strengthening its digital infrastructure throughout the upcoming fiscal quarters.
